Do forced distributions of inherited mutual fund shares reduce the value of the associated estate?

[gw-hicks]

Make that, You are a Level 15 idiot. After all, you say not to trust the answers here, yet you expect me to take your words seriously?!

[Critter-3]

But I post info from other sources for you to consider ... at no time do I say I am the expert since I don't know for sure what you really have ... all we here have is what you post and nothing said hear will be able to save you from an IRS error penalty.   Only you can make your decision with all the information you have at hand.  

[gw-hicks]

Hello martinmarks1919,

I NEVER said this had anything to do with an IRA.

In my original post, I said I was inheriting mutual fund shares.

Therefore I chose not to "answer" the questions that were not relevant to my situation.

Thanks for your reply. I do appreciate the info, even though it is not germane to my situation.

[macuser_22]

Everything that Critter#3 posted is 100% correct.

You have been asked several times to provide more information about the type of amount you inherited.      IRA's have a 10 year distribution  rule, other types of inheritances do not.  If it is not in an IRA then you can sell it any time.

We cannot give you accurate information and point you to official IRS documentation if you do not tell us.

Critter#3 is correct, you should not believe what strangers on the internet tell you, but you can believe actual IRS documentation that we point you to.   We are other user here to help you, not to argue with you.    If you do not want our help then please do not post here.

[gw-hicks]

Hello macuser_22,

According to the T. Rowe Price (TRP) web site, the account is an "Estate" account and listed as a non-retirement account. The account was my Mother's. Myself and my Nephew are beneficiaries.

In my discussions with TRP, they never said Mom's account was an IRA.

Others on this thread have accused me of not being willing to look for answers when in fact, that is what I am doing.

[gw-hicks]

Hello macuser_22,

I never said that I was going to trust anything posted here. That seems to be an assumption made by others about me.

At this point, I am trying to collect information related to possible tax liabilities as a beneficiary.

TRP lists my Mother's account as an "Estate" account. It's details are listed as "Non-Retirement." 

[macuser_22]

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@gw-hicks wrote:

Hello macuser_22,

According to the T. Rowe Price (TRP) web site, the account is an "Estate" account and listed as a non-retirement account. The account was my Mother's. Myself and my Nephew are beneficiaries.

In my discussions with TRP, they never said Mom's account was an IRA.

Others on this thread have accused me of not being willing to look for answers when in fact, that is what I am doing.

---

Ask whoever told you that it must be distributed within 10 years what they are talking about if not an IRA - ONLY IRA's have the 10 year rule.

OK - That is what I was asking for.    If the "estate" inherited the fund(s) then *you* did not inherited it, the estate did, and it must be reported on a 1041 estate tax return bu the administrator of of the estate.   In almost all circumstances the administrator of the estate will liquidate (sell the funds) and then distribute the cash to the beneficiaries of the estate and issue a K-1 form that the beneficiary's of the estate  enters on their personal  tax return so that a final estate tax return can be filed.

I would suggest that you contact a tax professional that does estates for help with this(assuming that you are the appointed estate administrator).

You can also read IRS Pub 559 (Survivors, Executors, and Administrators) for a lot of good information about filing the final return and estate return and other requirements.  If you do not feel comfortable doing it yourself then I suggest a tax professional or estate tax attorney for help.

https://www.irs.gov/pub/irs-pdf/p559.pdf